Trade report 14/03/2014
ZAR outlook
USD/ZAR expected range: 10.7400 – 10.8900
Better than expected local manufacturing data and a stronger EUR helped the Rand strengthen yesterday afternoon, but the currency slipped again this morning as investors show concerns over growth in China, the world’s second largest economy. The ZAR was trading at R10.8280/USD at 06:51GMT this morning, down 0.2% from its close of R10.8050 in New York yesterday evening.
Local news
Manufacturing data came in better than expected yesterday, although economists warn that growth of 2.5% still needs much improvement, especially with China experiencing a growth slowdown. Mining data disappointed yesterday which was to be expected. Production dropped from 12.2% y/y to 3.1% y/y and with on-going strike action these figures will most probably be affected through Q1 as well. SARB governor Marcus made comments last night that suggest that the markets expectations of big interest rate hikes are overdone, which may keep pressure on the local currency.
International news
Emerging market currencies have been feeling the pressure this week of investors nervous about the economic slowdown in China and the escalating uncertainty in the Ukraine area. This has caused much volatility in the markets, although EM currencies are presently mostly range-bound and waiting for further direction from international events and data releases, as dealers generally feel the selling was overdone.
TODAYS KEY DATA POINTS (GMT):
• 09:30 SA ILB auction
• 07:00 DE CPI y/y (final)
• 09:30 GB Visible trade balance (GBP)
• 12:30 US PPI final demand y/y
• 13:55 US Michigan consumer confidence (preliminary)
Foreign exchange South Africa – Let one of our professional consultants at Currency Solutions assist you. To know more about how we can help you Contact Us
Want to know where the markets are? View our Live Currency Rates
No comments:
Post a Comment